Best of Artemis, week ending 29th June 2014

Here are the ten most popular news articles, week ending 29th June 2014, on catastrophe bonds, reinsurance capital and related risk transfer topics, from the last seven days on Artemis. To ensure you never miss a thing  subscribe to the weekly Artemis email newsletter updates.

Top ten most viewed articles on Artemis.bm, week ending 29th June 2014:

1. World Bank sells hurricane & earthquake catastrophe bond for CCRIF
   The World Bank has issued (perhaps directly sponsored) its first catastrophe bond, according to reports, in a $30m deal designed to provide hurricane and earthquake reinsurance protection to the Caribbean Catastrophe Risk Insurance Facility (CCRIF).

2. ILS and cat bond investors. Yield hungry? Or seeking asset qualities?
   For many investors a high return is not the only reason for looking at alternative asset classes and hedge funds. Research shows many only seek a 4% to 6% return, information that will comfort the insurance linked investment market at a time of softer prices.

3. Munich Re’s Queen Street X Re cat bond withdrawn
   The world’s largest reinsurance company Munich Re has withdrawn the issuance of its latest catastrophe bond, Queen Street X Re Limited, as investor appetite was likely not strong enough to get the transaction completed at the size and pricing desired.

4. Alternative reinsurance capital, a seismic change: James Kent, Willis Re
   The flow of alternative capital into the reinsurance market in the last five years is a seismic change perhaps greater than any change seen at any time in the reinsurance business, according to James Kent, President of reinsurance broker Willis Re North America.

5. As alternative capital evolves expect corporate reinsurance sidecars
   As the reinsurance market adapts to and embraces capacity sourced from third-party investors and the capital markets it will innovate, finding new mechanisms and evolving reinsurance and capital market structures to deploy this capacity.

6. Alternative reinsurance capital a top 10 threat to European re/insurers: A.M. Best
   In a new report published by rating agency A.M. Best, alternative reinsurance capital is identified as one of the top 10 threats to European insurance and reinsurance companies financial strength and named as a ‘Grey Swan’.

7. Evolution required for reinsurers and property/casualty insurers: Analysts
   The reinsurance industry as well as the entire property casualty insurance sector needs to undergo an evolution, as the profound impact of new capital forces the traditional business model to be disrupted, according to industry analysts.

8. TransRe, management, increase shares in ILS manager Pillar Capital
   Shareholders Transatlantic Holdings, Inc. (TransRe) and the executive management of Bermuda-based insurance-linked asset manager Pillar Capital Holdings Limited have increased their ownership position in the firm to 50% each.

9. 36% of $500m+ reinsurance placements are non-traditional capital
   An average 36% of seven sample reinsurance placements of $500m or greater was placed with non-traditional reinsurance markets or using catastrophe bonds, according to data from reinsurance broker Willis Re.

10. Economic cost of climate change projected to grow, ILS has role to play
    A new report titled ‘Risky Business’ that focuses on the need for U.S. companies to treat climate change as any other business threat has been released, warning that climate change will cost businesses billions.

This is by no means every article published on Artemis during the last week, just the most popular, some of which were published over a week ago. There were 25 new articles published in the last week. To ensure you always stay up to date with Artemis and never miss a story subscribe to our weekly email newsletter which is delivered every Wednesday.

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Q1 2014 Catastrophe Bond & ILS Market Report – A Record Quarter

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This report reviews the catastrophe bond and insurance-linked securities (ILS) market at the end of the first-quarter of 2014, looking at the new risk capital issued and the composition of the transactions completed during Q1 2014. Download your copy here.